Answer all questions given in the prompt, and address any other legal issues that arise from the scenario. Write in IRAC format.

Doug is the owner of a chain of shoe stores. He hires Ray to be the manager of a new store, which is to open in Grand Rapids, Michigan. Doug, by written contract, agrees to pay Ray a monthly salary and 20 percent of the profits. Without Doug's knowledge, Ray represents himself to Carl as Doug's partner, showing Carl the agreement to share profits. Carl extends credit to Ray. Ray defaults.

Discuss whether Carl can hold Doug liable as a partners.(See Formation and Operation)